TIOL-DDT 1569 · the untouched capture
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<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#663399" size="3">TIOL-DDT 1569 </font><br> 16.03.2011 <br> Wednesday </strong></font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Prohibition on export of Non-basmati Rice - exemption for export to Nepal - DGFT amends Notification </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>DGFT</strong> has amended Notification No. 33/2009-14 dated 03.03.2010. By this amendment the export of 25,000 MT of non-Basmati rice to Nepal through MMTC shall be allowed during the KMS 2010-11 with a maximum of 25% brokens.</font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=45&filename=notification/dgft/2010/dgft10not033.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">DGFT Notification No. 33(RE-2010)/2009-14, Dated: March 15, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Tariff Value of Brass Scrap and poppy Seeds </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>GOVERNMENT</strong> has decreased the Tariff Value of poppy seeds from 2973 to 2950 US Dollars. The Tariff Value for Brass Scrap is increased from 4372 dollars to 4406 Dollars. There is no change in the tariff value of other items. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=24&filename=notification/custom/2011/cnt11_023.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">NOTIFICATION NO.23 /2011-CUSTOMS (N.T.) Dated: March 15, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">The Complaint Handling Policy of CBEC</font></strong></p> <p><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>CBEC</strong> has released its “<a href="http://www.taxindiaonline.com/RC2/pdfdocs/wnew/complaint_book_final.pdf" target="_blank">Complaint Handling policy</a>”. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“We, in the CBEC have a solemn responsibility to adhere to the highest integrity standards. Every possible step needs to be taken to ensure that instances of misconduct do not escape scrutiny and action. At the same time the morale of the officers should not be adversely affected by questioning their decisions /action on the basis of complaints of trivial/ technical nature not involving pecuniary advantage or any illegality. In this context a comprehensive Complaint Handling Policy is imperative for an effective and efficient administrative functioning. “THE COMPLAINT HANDLING POLICY OF CBEC” , seeks to ensure that complaints about corruption, malpractice or misconduct by officials of CBEC are received, recorded and acted upon in a manner consistent with the instructions of the Central Vigilance Commission (CVC). In the guidelines of this crucial policy document, there are adequate safeguards to ensure that frivolous and baseless complaints against officials do not become a tool of harassment or demoralisation and an impediment to discharge of official responsibilities .”, says Dutt Mazumder , Chairman, CBEC in his foreword to the Policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">“ We receive complaints about corruption, malpractices or misconduct by public servants in our department in a decentralized manner. In the absence of a structured policy, these complaints are dealt with differently by different field formations .Therefore, in order to have consistency and reduce discretion in the handling and processing of complaints in all formations under CBEC, a ‘Complaint Handling Policy' has been formulated.”, says Jasdeep Singh, DG, Vigilance, in her Preface. </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Rising Litigation With Employees - FM's Concern </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> Finance Minister has expressed his deep concern at the rising litigation with employees of the Income Tax Department. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A Committee has already been set up in the CBDT to, </font></p> <blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">i. Identify systematic causes for service litigation and litigation with taxpayers in the CBDT. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">ii. To prepare a roadmap for reducing the existing litigation and also to avoid litigation for future. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">iii. To act as standing committee to reduce litigation. </font></p> </blockquote> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">However, only the matters involving Group 'A' and ‘B' officers or where Union of India is one of the parties, are dealt by the CBDT. Large number of service litigation cases involving Group 'B' and 'C' officials are pending in various CCIT (CCA) regions. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT has therefore, directed to set up standing committee for dealing with service litigation and grievance redressal of Group 'B' and 'C' employees in each CCIT ( CCA ) region. The committee to deal with service litigation matters of Group 'B' and 'C' employees should consist of one Addl CIT as Chairperson and two JCslT / DCslT as members. The committee shall look into all existing service litigation matters concerning Group 'B' and 'C' employees and also to look into the future cases in line with the directions of Hon'ble FM and the National litigation Policy. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Group 'B' and 'C' employees may also be advised to approach the committee for redressal of their grievance. The committee may deal with the grievance of employee within a period of one month and make its recommendation to authority competent to take decision in the matter. </font></p> <p><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=wnew/cbdt_hrd.htm" target="_blank"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">CBDT F No. HRD /CM/210 /4/2010 - 11 / 1931 Dated: March 11, 2011 </font></strong></a></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Cabinet Approval for GST Bill </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>IT</strong> is learnt that the Union Cabinet has given its approval for a Bill to amend the Constitution to introduce a uniform GST . The perseverant Finance Minister is keen to have the GST in place by April, 2012; maybe he wants a place in the history of India as the author of GST ! Industry and Trade also welcome it and the new President of FICCI wants to meet the State Governments to try and convince them that it is good for everybody. If the BJP can look a little beyond the temples and consider economics without politics, this Bill will be through. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">GST is good for the country and certainly Pranab Da is not going to gain anything personally, except perhaps a place in history. If the politicians can prove, for a change that they are not anti social and anti national, they will ensure that GST Bill is passed. But unfortunately, we don't have politicians who place economics above petty politics! </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Politics of Income Tax - Jagan Reddy Gets 122 Crores IT Notice </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>JAGAN</strong> Mohan Reddy, s/o of YS Rajasekhara Reddy, former Chief Minister of Andhra Pradesh is said to be worth a Lakh of Crores. This was okay when he and his father were in the Congress party. Now that Jagan Reddy has the audacity to challenge the authority of the all powerful MADAME, he has to explain this money. It seems the Income Tax Department has issued a demand notice to Jagan's Jagathi Publications Pvt Ltd ( JPPL ) which runs the popular newspaper SAKSHI and the TV Channel also known as SAKSHI . </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">JPPL issued shares at a premium of Rs. 350 per share. The investors included Matrix Group of Companies (Rs 70 crore ), Aurobindo Group (Rs 10 crore ) and Hetero Group of Companies (Rs 4.5 crore ). The IT Department sought to know why these companies bought shares in JPPL by paying a premium of Rs 350 per share whose face value was Rs 10 per share. All of them are said to have benefited by way of allotment of projects or land by the Andhra Pradesh government between 2007 and 2009 when Y S Rajasekhara Reddy was the chief minister. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The IT Department is said to have treated the premium amount of Rs 350 per share received by JPPL from ‘other shareholders' as benefits and, thus, taxable. The department calculated that JPPL sold 79,30,539 shares of Rs 10 at a premium of Rs 350 amounting to Rs 277,56,88,650 to the ‘other shareholders'. Unexplained investments and cash credits of Rs 15 crore were also treated as benefits to JPPL . </font></p> <p align="center"><strong><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif">Civil Aviation ministry to take up Service Tax issue with MOF </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>ADDRESSING</strong> Industry's concerns, Dr Nasim Zaidi , Secretary, Ministry of Civil Aviation, said that the Ministry is well aware of the unfavourable fiscal environment affecting the viability of civil Aviation and the Ministry would take up the issue of recent hike in Service Tax with the Finance Ministry. He was speaking at the India Aviation Meet organized by Confederation of Indian Industry (CII) yesterday. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Captain GR Gopinath of Deccan said, “ it is high time that transport be regarded as an integral part of the economic growth. With less than 2.5% of the population accessing aviation as a means of transport, Policy Framers would do good to do away with knee jerk reactions which are not only inadequate but also harmful. ” </font></p> <p align="center"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><font color="#006600">Jurispruden</font><font color="#FF6633" size="5">tiol</font><font color="#006600"> – Thursday's cases</font></strong></font></strong></font></p> <p><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif"><img src="http://www.taxindiaonline.com/RC2/image/stories/ddt_hammer.jpg" alt="Legal Corner Icon" width="100" height="84" hspace="5" border="0" align="left">Service Tax</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Refund under Notification No 41/2007 ST – The provisions of amending Notification No 33/2008 ST are not applicable for the exports made prior to date of amendment, though claims were filed after amendment – CESTAT. </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> dispute pertains to the refund of service tax paid on the services used for goods exported under Notification No 41/2007 ST dated 6.10.2007. This notification was amended vide Notification No. 33/2008-ST dated 07.12.2008 to delete the condition that the goods should be exported without availing the drawback facility and to increase the upper limit of refund amount in respect of the foreign commission agents to tax payable on 10% of the FOB value of the exports instead of 2% earlier. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Income Tax </font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Sec 80IB - Whether reimbursement of expenses paid to a captive unit as idle period charges can be treated as receipt from industrial undertaking - NO, says ITAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>THE</strong> issue before the Bench is - Whether reimbursement of expenses paid to a captive unit as idle period charges can be treated as receipt from industrial undertaking for the purpose of Sec 80IB benefits. NO is the verdict. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">Customs</font></strong></p> <p align="justify"><strong><font color="#FF6633" size="2" face="Verdana, Arial, Helvetica, sans-serif">Adjudicating authority neatly set out his findings in respect of each of SCNs and arrived at distinct conclusions in relation to respondents - department should have raised specific grounds in appeal against each of the respondents - Revenue dismally failed to meet this basic requirement of an appeal - Appeals dismissed: CESTAT </font></strong></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>FILING</strong> of an appeal for the sake of filing one has become the favourite pastime of the Revenue authorities. And once the same is filed, there is no established mechanism to keep a track of these. Ascertaining whether the same is disposed or is still pending before the CESTAT is an exercise which almost always is given a go by. </font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">A similar story happened in the present case. The Commissioner of Customs (Exports), JNCH happened to pass a common order in the year 2002 concerning 14 different show cause notice issued to different parties but all of them owing their genesis to a common investigation. </font></p> <p align="justify"><strong><font color="#663399" size="2" face="Verdana, Arial, Helvetica, sans-serif">See our columns Tomorrow for the judgements </font></strong></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until Tomorrow with more<strong> DDT </strong></font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have a Nice Time. </font></p> <p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail your comments to</font><font size="2" face="Verdana, Arial, Helvetica, sans-serif"> <a href="mailto:vijaywrite@taxindiaonline.com"><strong>vijaywrite@taxindiaonline.com </strong></a></font></p> </body> </html>